Companies and Investors Applaud U.S. Governors for Strengthening RGGI

On the heels of the Trump administration’s latest move to repeal the Clean Power Plan, the first comprehensive effort to cut power plant pollution, major companies and investors are praising an agreement by states participating in the Regional Greenhouse Gas Initiative (RGGI) to extend and strengthen the carbon cap-and-trade program through 2030. 

RGGI states, which include nine northeastern and mid-atlantic states, are forging ahead to ensure their power generation fleet meets and surpasses the standards set in place by the Clean Power Plan, despite the action taken yesterday by the administration. 

“Timberland is investing in clean energy because it’s good for the economy and our bottom line,” said Colleen Vien, Sustainability Director at Timberland. “Forward-looking policies like RGGI empower businesses to invest in our future while reducing costs and caring for our planet.”

In late August, the governors of the RGGI states announced a plan to cut carbon pollution an additional 30 percent between 2020 and 2030. Since the program’s inception in 2008, RGGI states have already achieved a 40 percent reduction in carbon emissions. These emissions reductions were achieved while the economy grew by 30 percent and electricity prices dropped by 6 percent across the region, according to a recent report by the Acadia Center. 

“As a global commercial real estate firm, JLL understands that investing in clean energy is good for our clients’ bottom line,” said VP of Cynthia Curtis, VP of Sustainability at JLL, “The regional approach of RGGI allows multiple states to meet their commitments to reducing emissions and investing in clean energy, which enhances our ability to provide our clients with greater clean energy solutions.”

The business community has been vocal about its widespread support for RGGI because of its market-friendly approach and ability to drive economic growth. In letters sent to the nine governors in August 2016, more than 90 companies and investors noted that, “reductions beyond 2020 will provide certainty for companies to plan and invest for the future, make the region an attractive place to do business, and continue to lower electricity rates for consumers.”

“Through its market-friendly design, RGGI is a cost-effective insurance policy helping manage risks of climate change while expanding the region’s economy,” said  Aaron Ziulkowski, Manager, ESG Integration at Walden Asset Management. “A stronger RGGI program will send the market signals to unlock additional clean energy investments and the jobs and economic growth that accompany them.” 

“Amid a wave of climate dissent and rollbacks at the federal level, state and private sector leadership is needed now more than ever,” Anne Kelly, senior director of policy and the BICEP Network at Ceres, wrote in an opinion editorial in the Baltimore Sun. “The recent decision by nine governors to double down on cutting carbon is a win not only for the planet but also for the economy.”

The proposal to strengthen the RGGI program through 2030 was announced in August 2017. It will need to be finalized and later formally adopted by the states before it can take effect.